GIFT DUTY.
No. 15 of 1947.
An Act to amend the Gift Duty Act 1941.
[Assented to 3rd June, 1947.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Gift Duty Act 1947.
(2.) The Gift Duty Act 1941 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Gift Duty Act 1941–1947.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Imposition of gift duty.
3. Section four of the Principal Act is amended by adding at the end thereof the following sub-sections:—
“(2.) Notwithstanding anything contained in the last preceding sub-section, the gift duty payable in respect of any gift (not being a gift to which the next succeeding sub-section applies) made after the commencement of this sub-section shall not exceed one-half of the amount by which the value of that gift exceeds Two thousand pounds.
“(3.) Where, apart from this sub-section, the rate of gift duty in respect of any gift made after the commencement of this subsection is to be ascertained by reference to the value of that gift combined with the value of any other gift or gifts, the gift duty in respect of that gift shall not exceed an amount which bears the same proportion to one-half of the amount by which the value of all those gifts exceeds Two thousand pounds as the value of that gift bears to the total value of such of those gifts as are made after the commencement of this sub-section.”.
The Schedule.
4. The Schedule to the Principal Act is amended by omitting from paragraphs (a) and (b) the words “Five hundred” and inserting in their stead the words “Two thousand”.
Application of amendments.
5.—(1.) Subject to this section, the amendments made by this Act shall not in any way affect gift duty in respect of any gift made before the commencement of this Act.
(2.) In ascertaining the rate of gift duty in respect of a gift made before the commencement of this Act, the value of any gift or gifts made after that commencement shall not be taken into account unless the “value of all gifts”, as defined in the. Schedule to the Principal Act, exceeds Two thousand pounds.
Overview
The Gift Duty Act 1947 was enacted to amend the existing Gift Duty Act 1941, aiming to address a perceived need to adjust the framework for imposing gift duty in Australia. The Act was assented to on 3rd June 1947 by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. Its primary objective is to revise the rates and thresholds for gift duty, thereby impacting the financial obligations associated with gifting transactions. The Act introduces changes to the duty payable on gifts made after its commencement, setting new limits and proportions to ensure a fair and updated taxation approach on gifts.
Scope and Application
The Gift Duty Act 1947 is an amendment to the Gift Duty Act 1941, which applies to gifts made after the commencement of this Act. This legislation applies to all persons and entities involved in the transfer of gifts, irrespective of whether the giver or the recipient is a resident of Australia or not. The Act primarily targets the imposition of gift duty, adjusting the thresholds and rates for calculating such duties. Geographically, the Act has a Commonwealth reach, meaning it applies across the entire nation, including all states and territories of Australia. There are no explicit exclusions or exemptions mentioned in the provided excerpt, but it is implied that the amendments do not affect gifts made prior to the Act's commencement. The Act may also extend its application through subordinate instruments, although specific details on this are not provided in the excerpt.
Key Provisions
The Gift Duty Act 1947 (sections 1-5) amends the Gift Duty Act 1941, introducing significant changes to the calculation of gift duty on gifts made after its commencement. Under section 3(2) of the Principal Act, the duty on gifts not exceeding Two thousand pounds is now capped at one-half of the amount by which the value of the gift exceeds this threshold. This amendment introduces a ceiling on the gift duty payable, effectively reducing the burden on smaller gifts. Additionally, section 3(3) ensures that the duty on gifts that are part of a combined value assessment does not exceed a proportionate share of the total duty, relative to the value of the gift in question. These changes are reflected in the updated Schedule, which adjusts the threshold for gift duty calculation from Five hundred to Two thousand pounds (section 4).
The Act imposes specific obligations on the parties involved in gift transactions, particularly the donor and the recipient. Donors must ensure that the correct amount of gift duty is calculated and paid in accordance with the amended provisions. Recipients, while not directly obligated under the Act, must be aware of the implications of receiving a gift subject to duty, including potential financial repercussions for the donor. The Act also places a responsibility on the Commissioner of Taxation to administer and enforce the new provisions effectively.
Failure to comply with the requirements of the Gift Duty Act 1947 may result in legal consequences. While the specific offences and penalties are not detailed in the provided text, it is reasonable to infer that breaches of the Act could lead to civil or criminal penalties. Typically, such breaches might result in fines or other financial penalties, and in severe cases, criminal charges could be pursued. The precise nature and extent of these penalties would be governed by other relevant legislation, such as the Taxation Administration Act 1953, which would outline the enforcement mechanisms and possible sanctions for non-compliance.